Push underway to fund Cobo expansion

LANSING - The Cobo Center brings more than 700,000 people to Detroit for a prestigious automobile showcase each year, but is it big enough to continue?

The North American International Auto Show has claimed the convention center since 1965, and each January the event draws media attention from around the globe.

Today, auto show coordinators say Cobo is outdated, with limited space, and the city risks losing its automobile-capital image.

Organizers say they fear the event might move to a state-of-the-art convention site with more room for displays.

"New York, Chicago, even Washington, D.C., Miami would love to have that golden ring," said Rod Alberts, executive director of the Detroit Auto Dealers Association.

He said the show could move to one of those cities if Cobo is not renovated.

David Sedgwick, editor of Automotive News, a Detroit-based weekly industry magazine, said it's hard to find another event in Detroit that attracts as much attention as this one.

"It focuses the entire world's automotive press corps on Detroit and cements the city's status in the automotive world as a place that matters," said Sedgwick. "The automakers reinforce that by the sheer number of concept cars and reviews they reserve for Detroit."

At a Senate Commerce and Tourism Committee meeting, lawmakers heard from the dealers' group that renovation is critical and requires immediate action. It emphasized the need for more space.

The committee chair, Sen. Jason Allen, R-Traverse City, said the committee plans to move on legislation in a timely manner.

Doug Fox, the dealers association president, told the committee that expansion of Cobo in 1989 brought Detroit from 11th ranking among auto shows to the top spot. He said 10 years ago, 190 models were unveiled to the public, and by 2011 that number is expected to double.

"If the hall is not expanded by that time, the status of this show will diminish," said Fox. "Emerging brands are going to be followed heavily by the press wherever they decide to go. It would be a shame if we don't have room for them in Detroit."

He added that more than 16,000 jobs are created for the event, and it brings upwards of $600 million to the city each year - a valuable and irreplaceable economic asset.

For more than five years, advocates and lawmakers have been debating plans for the development project, with proposed costs ranging from $90 million to $900 million. The delay on action seems to rest on political disagreement.

Discussion has revealed unanimity among officials, with widespread agreement over the need to expand, but widespread disagreement over the exact plan and investment required for the project.

Sen. Hansen Clarke, D-Detroit, supports a proposal to finance a portion of redevelopment with $50 million drawn from the 21st Century Jobs Fund over the next two years.

"This bill is a statement we want regional leaders to come to an agreement on how to govern Cobo," said Clarke. "We can't afford to lose that auto show.

"That would make it harder for us to track jobs and businesses, and our global identity as an automotive leader would be lost," he said.

The 21st Century Jobs Fund invests in development projects that benefit the state's economy and generate jobs in a technological age. The fund is seeded by a national settlement with tobacco companies that provides each state millions of dollars every year.

Terry Stanton, the public information officer for the Department of Treasury, where the jobs fund resides, said his department doesn't yet have a position on the proposed legislation.

But he agrees the Cobo expansion is important to Michigan and retaining the auto show.

Clarke, who represents the district Cobo is located in, said replacing controversial former Mayor Kwame Kilpatrick with current Mayor Ken Cockrel Jr. should make a difference in terms of the city's prosperity and momentum on the proposal.

Auto dealer association representatives met with the governor's staff and legislative leaders and said they are confident a bipartisan decision will be made by the end of the year.

"Everyone seems to be ready to make something happen on this issue, which has not been the case in the past in Lansing," said Fox. "This is a way for legislators to put differences aside and do what's right for the state and keep the show in Michigan."